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Patents and the Performance of Voluntary Standard-Setting Organizations

  • Marc Rysman

    ()

    (Department of Economics, Boston University, Boston, Massachusetts 02215)

  • Timothy Simcoe

    ()

    (Joseph L. Rotman School of Management, University of Toronto, Toronto, Ontario M5S 3E6, Canada)

Voluntary standard-setting organizations (SSOs) are a common feature of systems industries, where firms supply interoperable components for a shared technology platform. These institutions promote coordinated innovation by providing a forum for collective decision making and a potential solution to the problem of fragmented and overlapping intellectual property rights. This paper examines the economic and technological significance of SSOs by analyzing the flow of citations to a sample of U.S. patents disclosed during the standard-setting process. Our main results show that the age distribution of SSO patent citations is shifted toward later years (relative to an average patent) and that citations increase substantially following standardization. These results suggest that SSOs identify promising technologies and influence their subsequent adoption.

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File URL: http://dx.doi.org/10.1287/mnsc.1080.0919
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Article provided by INFORMS in its journal Management Science.

Volume (Year): 54 (2008)
Issue (Month): 11 (November)
Pages: 1920-1934

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Handle: RePEc:inm:ormnsc:v:54:y:2008:i:11:p:1920-1934
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  1. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
  2. Gandal, Neil & Kirkwood MP, Archy & Rob, Rafael, 1999. "The Dynamics of Technological Adoption in Hardware/Software Systems: The Case of Compact Disc Players," CEPR Discussion Papers 2078, C.E.P.R. Discussion Papers.
  3. Jerry A. Hausman & Bronwyn H. Hall & Zvi Griliches, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," NBER Technical Working Papers 0017, National Bureau of Economic Research, Inc.
  4. Benjamin Chiao & Josh Lerner & Jean Tirole, 2007. "The rules of standard-setting organizations: an empirical analysis," RAND Journal of Economics, RAND Corporation, vol. 38(4), pages 905-930, December.
  5. Mowery, David C. & Simcoe, Timothy, 2002. "Is the Internet a US invention?--an economic and technological history of computer networking," Research Policy, Elsevier, vol. 31(8-9), pages 1369-1387, December.
  6. Bronwyn H. Hall & Adam Jaffe & Manuel Trajtenberg, 2005. "Market Value and Patent Citations," RAND Journal of Economics, The RAND Corporation, vol. 36(1), pages 16-38, Spring.
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